The True Cost of Having “Good Credit”

(Phase 1) I don’t have credit yet so my parents will have to co-sign on these student loans for this school I should have never gone to. *+$35k in additional school loans

(Phase 2) Now I’m turning 18 and need to open up a credit card so I can build credit myself. *+$80/year in annual fees

(Phase 3) Oops, after they’ve emailed and mailed me a billion times to participate in reward bonus after reward bonus, I fell for the trap and charged up about $6,500 worth of things I can’t pay back.*+ $270/month in minimums

(Phase 4) I need a car but can’t save for a car and pay all of these credit card payments. I’m going to have to take out a first time buyers program for a loan on a car at 14% interest for 60 months. *+$450/month car note

(Phase 5) Damn, I’ve been paying on a used car for 3 years and haven’t paid off a quarter of the principal. Looks like I need to fix it soon. Luckily I have great credit now so I can just open up another credit card to pay for repairs while I scrounge for the car note at the same time. *+$150/month in payments for the new card + $50annual fee

(Phase 6) F*… I have at least $700 in debt payments making shit money. And thats before my student loans payments kick in later this year. I’m looking at $88k in debt …and thats if I paid it off all at once. Either way I need to keep afloat so I can keep my credit in tact for this mortgage everyone told me I need.

(Phase 7) They told me I couldn’t qualify for this mortgage before I got my debt (payments) to income lower so I refinanced everything outside of my student loans into a personal loan. What sucks is now the interest portion of that loan starts from scratch so I’ll be paying less APR but no principal whatsoever.

(Phase 8) Whew…$38k in debt payments and 8 years later I juggled my credit well enough to get this house! Woohoo! Since my credit is so great I didn’t put anything down but my closing costs.

(Phase 9) Cot damn these real estate expenses are tough to do with all this consumer debt and student loan payments. Didnt put anything down so my mortgage is thick AF. I’m two months late on the mortgage and a few payments late on everything else. But I have to keep up juggling these payments to avoid default. *+ thousands in fines, late payments and penalties each year on various debts

(Phase 10) Stressed out, pimped out and ready to quit. But I’mma make this post on Facebook about my 850 credit score and clown the #NoDebtMovement before Jarim deletes my comment.

Heres the truth of the matter:

You can find these so called “cost of having bad credit” images all over the place. But what people rarely ever talk about is the other side of this.

Truth is the person who filed BK early in these steps and switched to cash and investing (the BKF Philosophy) is infinitely more well off than the person depicted above.

Plus anytime someone charges you for something you know isn’t right (like a medical payment etc), you’re 5 times more likely to try to work out a payment of that item instead of the person who lives cash only that simply says…”report me b*tch”. lol